The Autumn Statement has heralded good news for small business owners and relief for our ailing High Streets, says commercial property agent Prop-Search.
In his speech of 05 December 2013, Chancellor George Osborne announced that Small Business Rates Relief will be extended for another year. Eligible businesses – those whose sole commercial property occupied has a Rateable Values less than £6,000 – will continue to pay no business rates until 01 April 2015. The Government estimates that over half a million small businesses will benefit from this extension.
The Chancellor will also cap increases in business rates. Business rates were set to rise by 3.2% in April 2014, based on the September 2013 retail prices index measure of inflation. However, the Chancellor will cap this increase at 2%, a move which is predicted to cost the Government’s coffers more than £300m.
From next year, businesses will also be allowed to pay their rates in 12 monthly instalments.
The Government has also recognised that further relief needs to be given to the Country’s High Streets as they suffer from the effects of the recession and increase in on-line shopping. Subsequently, the Chancellor has announced a new reoccupation relief to encourage use of vacant town centre shops – this relief will halve business rates for new occupants. Furthermore, every retail business occupying a property with a Rateable Value of up to £50,000 will receive a business rates discount £1,000.
